Ameritrans Capital Corporation Appoints Michael R. Feinsod as President

  
    
  
  
    
      The Board of Directors of Ameritrans Capital Corporation (NASDAQ: AMTC, 
      AMTCP, AMTCW) announced that it has appointed Michael R. Feinsod as 
      President.
    
    
      Effective November 27, 2006, in anticipation of the expansion of the 
      business of the Company, Gary C. Granoff will step down as President of 
      the Company but will continue to serve as Chairman of the Board of 
      Directors, Chief Executive Officer and Chief Financial Officer of the 
      Company and President, Chief Executive Officer and Chairman of the Board 
      of Elk Associates Funding Corporation, the Company’s 
      wholly-owned subsidiary.
    
    
      Mr. Feinsod, 35, has served as a member of the Board of Directors of Elk 
      and the Company since 2005. Since 1999, Mr. Feinsod has been a managing 
      member of Infinity Capital LLC, an investment management company. Prior 
      to founding Infinity, Mr. Feinsod was an analyst and portfolio manager 
      for Mark Boyar & Company, Inc. Mr. Feinsod is admitted to practice law 
      in New York and was an associate in the corporate law department of 
      Paul, Hastings, Janofsky & Walker LLP. Mr. Feinsod holds a Juris 
      Doctorate degree from Fordham University School of Law and a Bachelor of 
      Arts from George Washington University.
    
    
      The Company plans to enter into an employment agreement with Mr. Feinsod 
      pursuant to which he will serve as President from November 27, 2006 
      until May 31, 2009. Each party will have the right, however, to 
      terminate the agreement on or before June 1, 2008, if certain 
      performance criteria have not been met. Pursuant to the proposed 
      agreement, Mr. Feinsod will receive an initial annual base salary of 
      $331,500 and a guaranteed annual bonus equal to at least $15,000. During 
      and after the contract term, Mr. Feinsod will be subject to certain 
      confidentiality, non-solicitation and non-competition provisions in 
      favor of the Company. Pursuant to the terms of Mr. Feinsod’s 
      employment, the Board of Directors, upon the recommendation of the 1999 
      Employee Plan Committee, granted Mr. Feinsod options to purchase 80,000 
      shares of common stock of the Company excisable at $5.28 per share, 
      which represents the closing price of the Company shares of common stock 
      on November 27, 2007, the date of the grant. So long as Mr. Feinsod 
      continues to be employed by the Company, the options vest in four (4) 
      equal annual installments, with the first installment vesting yesterday. 
      If Mr. Feinsod’s employment is terminated due 
      to the occurrence of a merger or a sale of substantially all the assets 
      of the Company the vesting period for the options will accelerate.
    
    
      Gary Granoff, Chief Executive Officer of Ameritrans stated, “We 
      are excited to have Michael joining us at this time. His ability to 
      identify new business opportunities and his entrepreneurial strengths 
      will add important momentum to Ameritrans’ 
      expansion and investment diversification.”
    
    
      Commenting on his appointment Mr. Feinsod said, “I 
      am very pleased that the Company has offered me this opportunity to 
      realize the potential growth of the Company’s 
      business that I believe we can achieve in both Ameritrans and Elk.”
    
    
      Ameritrans Capital Corporation is a specialty finance company engaged in 
      making loans to, and investments in, small businesses. Ameritrans’ 
      wholly-owned subsidiary, Elk Associates Funding Corporation, has been 
      licensed by the United States Small Business Administration as a Small 
      Business Investment Company since 1980. The Company maintains its 
      offices at 747 Third Avenue, 4th Floor, New 
      York, NY, 10017.
    
    
      This announcement contains certain forward-looking statements within the 
      meaning of the Private Securities Litigation Reform Act of 1995. Such 
      statements are subject to certain risks and uncertainties that could 
      cause actual results to differ materially from those presently 
      anticipated or projected. Ameritrans Capital Corporation cautions 
      investors not to place undue reliance on forward-looking statements, 
      which speak only as to management’s 
      expectations on this date.
    
  
The Board of Directors of Ameritrans Capital Corporation (NASDAQ:
AMTC, AMTCP, AMTCW) announced that it has appointed Michael R. Feinsod
as President.

   Effective November 27, 2006, in anticipation of the expansion of
the business of the Company, Gary C. Granoff will step down as
President of the Company but will continue to serve as Chairman of the
Board of Directors, Chief Executive Officer and Chief Financial
Officer of the Company and President, Chief Executive Officer and
Chairman of the Board of Elk Associates Funding Corporation, the
Company's wholly-owned subsidiary.

   Mr. Feinsod, 35, has served as a member of the Board of Directors
of Elk and the Company since 2005. Since 1999, Mr. Feinsod has been a
managing member of Infinity Capital LLC, an investment management
company. Prior to founding Infinity, Mr. Feinsod was an analyst and
portfolio manager for Mark Boyar & Company, Inc. Mr. Feinsod is
admitted to practice law in New York and was an associate in the
corporate law department of Paul, Hastings, Janofsky & Walker LLP. Mr.
Feinsod holds a Juris Doctorate degree from Fordham University School
of Law and a Bachelor of Arts from George Washington University.

   The Company plans to enter into an employment agreement with Mr.
Feinsod pursuant to which he will serve as President from November 27,
2006 until May 31, 2009. Each party will have the right, however, to
terminate the agreement on or before June 1, 2008, if certain
performance criteria have not been met. Pursuant to the proposed
agreement, Mr. Feinsod will receive an initial annual base salary of
$331,500 and a guaranteed annual bonus equal to at least $15,000.
During and after the contract term, Mr. Feinsod will be subject to
certain confidentiality, non-solicitation and non-competition
provisions in favor of the Company. Pursuant to the terms of Mr.
Feinsod's employment, the Board of Directors, upon the recommendation
of the 1999 Employee Plan Committee, granted Mr. Feinsod options to
purchase 80,000 shares of common stock of the Company excisable at
$5.28 per share, which represents the closing price of the Company
shares of common stock on November 27, 2007, the date of the grant. So
long as Mr. Feinsod continues to be employed by the Company, the
options vest in four (4) equal annual installments, with the first
installment vesting yesterday. If Mr. Feinsod's employment is
terminated due to the occurrence of a merger or a sale of
substantially all the assets of the Company the vesting period for the
options will accelerate.

   Gary Granoff, Chief Executive Officer of Ameritrans stated, "We
are excited to have Michael joining us at this time. His ability to
identify new business opportunities and his entrepreneurial strengths
will add important momentum to Ameritrans' expansion and investment
diversification."

   Commenting on his appointment Mr. Feinsod said, "I am very pleased
that the Company has offered me this opportunity to realize the
potential growth of the Company's business that I believe we can
achieve in both Ameritrans and Elk."

   Ameritrans Capital Corporation is a specialty finance company
engaged in making loans to, and investments in, small businesses.
Ameritrans' wholly-owned subsidiary, Elk Associates Funding
Corporation, has been licensed by the United States Small Business
Administration as a Small Business Investment Company since 1980. The
Company maintains its offices at 747 Third Avenue, 4th Floor, New
York, NY, 10017.

   This announcement contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of
1995. Such statements are subject to certain risks and uncertainties
that could cause actual results to differ materially from those
presently anticipated or projected. Ameritrans Capital Corporation
cautions investors not to place undue reliance on forward-looking
statements, which speak only as to management's expectations on this
date.